Table of Contents
Question Number Question/Topic Page Number
1 Discuss FIVE (5) steps
any business needs to 2-6
consider when
implementing a knowledge
management system.
2 Elaborate on AT LEAST
FIVE (5) benefits of the 7-9
KMS example, VEND.
3 Discuss any five
applications of IoT used in 10-12
the retail industry.
4.1 Discuss how are
information systems used 13-14
in retail.
4.2 Discuss ANY FOUR (4)
examples of retail 14-15
information systems.
References 16-17
Question 1
1
Introduction
The old strategy to managing people, natural, and material resources is giving way to
the knowledge management approach in today's world. Knowledge Management (or
KM for Knowledge) is a system that helps us understand how and why something
happened in a certain firm or enterprise. This technique is referred to as "corporate
memory" in the business world. Knowledge is considered in this context as an
organization's ability to function effectively. The process through which an
organization collects, organizes, exchanges, shares, and assesses its own resources in
terms of resources, documents, knowledge, and skills of its associates is referred to as
knowledge management.
By the beginning of 1998, technological developments had enabled the abolition of a
widespread deficiency: companies did not systematically manage the knowledge
gained through their activities. When someone departs an organization, there is an
irrevocable loss of competence, and the entire training, knowledge acquisition, and
method development process must be redone. In less than a decade, several businesses
have developed knowledge management systems. This strategy grabbed the interest of
non-governmental organizations (NGOs) because many of them develop expertise
while dealing with frequent changes in associates.
Since the sheer presence of resources is insufficient incentive for adult learning,
knowledge management comprises the ability to organize data (data mining) as well
as specific strategies by which the searched data will "push" the target users. Dealing
with the knowledge component of business activities in its open expression and
integration into all aspects of strategy work, from policy to practice at all
organizational levels.
There have been various attempts to systematize information, but the most important
ones for management are classifications that aid in the creation of knowledge
management areas, i.e. those that are relevant from the standpoint of company
operations and corporate functioning. Five types of knowledge are included in one of
the fundamental divisions (Zack 1999): Declarative knowledge refers to knowing
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something about someone or something (know-what), procedural knowledge refers to
knowing how (know-how), causal knowledge refers to knowing why (know-why),
conditional knowledge refers to knowing when (know-when), and relational
knowledge refers to knowing who / what with whom / what (know-who, know-
where).
These types of knowledge can be seen as crucial components of knowledge in terms
of establishing managerial competencies. Individual knowledge and society
knowledge can be separated. Individual knowledge includes knowledge that can be
both general and specific. broad knowledge refers to knowledge of specific subjects
that are generally of interest to the broad public and, as such, are accessible to all and
are normally acquired throughout the elementary school phase.
Special knowledge is knowledge of a particular topic of interest that, unlike general
knowledge, is not available to everyone but is a conditionally stated privilege of those
with higher educational levels. The knowledge maintained by an organizational unit is
referred to as collective knowledge. Collective knowledge equals the accumulated
knowledge of the individuals who compose the organization when considered as a
group of individuals.
However, collective knowledge has an insensitive and synergetic component, which
implies that when two people interact, they generate more information as a result of a
celebration process, which refers to knowledge enhancement. Firms must have
individuals with a broad variety of competence, that is, a greater number of people
who are specialists in specific disciplines.
The contrast between implicit (tacit) and explicit information (knowledge) is the most
important knowledge split in terms of knowledge management systems. Explicit
knowledge is knowledge that can be stated and transmitted between people, whereas
implicit knowledge is personal knowledge that is embodied in human experience and
contains intangible elements such as personal beliefs, attitudes, and values. Murray
(2000).
For firms, managing implicit information is significantly more challenging than
managing explicit knowledge. The reasoning is complicated, and it derives from the
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fact that implicit knowledge is not written anywhere and is an immanent part of
everyone who possesses it. It is transmitted to others through discourse, reciprocal
disputes, open thoughts, and, if necessary, transmission. This study raises the issue of
how to manage implicit knowledge when staff change or retire. Workers in these
circumstances take with them a piece of the knowledge they obtained in the given
organization, which belongs to the organization since it invested the resources and
time required to develop it, and which should remain after they leave but is, by
definition, invisible.
Organizations encounter substantially less difficulties administering implicit
knowledge when retiring individuals than when transferring personnel to another
organization, which delivers the implicit knowledge of freshly recruited workers with
no investment. The problem is overcome by codifying implicit knowledge, which
represents its transformation into an explicit form. Using applicable symbols
(depending on the type of media), implicit knowledge is turned into explicit
knowledge.
To successfully implement a knowledge management program in one organization, all
of the knowledge sources available to that organization must be identified. In general,
there are two sorts of knowledge: internal and external sources. Employee behavior,
processes, software, and equipment are examples of internal knowledge sources that
reside in the "heads" of the organization's members. Internal knowledge sources may
be documented in multiple documents or stored in a database.
External sources of wide value include publications, universities, and government
agencies, consulting firms, professional groups, personal interactions, suppliers,
information brokers, and strategic alliances (Zack 1999).
Efficient behavior comprises carrying out the most desirable procedures and making
the best choices possible. Knowledge management can assist an organization in
making and implementing the right decisions, allowing it to become more efficient.
Members of an organization can use knowledge management to obtain information
needed to monitor external occurrences. As a result, there are fewer surprises for the
organization's management and, as a result, there is less need for plan adjustments.
Inadequate knowledge management, on the other hand, can lead to organizational
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errors that result in the repetition of the same problems or poor forecasting, even
when the problems are obvious (Bacera-Fernandez and Gonzales 2004).
There are several key steps that a business should consider when implementing a
knowledge management system. These steps are based on best practices and can help
ensure a successful implementation. Below are five important steps:
Define the goals and objectives of the knowledge management system
The first step in implementing a KMS is to define the goals and objectives that the
system will help the organization achieve. This involves identifying the business
needs that the system will address and the specific benefits that the organization
expects to realize from the KMS implementation (Jennex, 2016).
Identify the critical knowledge areas
The second step is to identify the critical knowledge areas that the KMS will focus on.
This involves identifying the types of knowledge that are important to the
organization and the key areas where knowledge is needed to support business
operations (Nonaka & Takeuchi, 1995).
Select the appropriate technology
The third step is to select the appropriate technology for the KMS. This involves
identifying the technology requirements for the system and evaluating different
technology solutions to determine which one is best suited to meet the organization's
needs (Alavi & Leidner, 2001).
Develop a knowledge management strategy
The fourth step is to develop a knowledge management strategy that outlines how the
KMS will be used to support the organization's business operations. This involves
developing policies and procedures for knowledge creation, sharing, and use, and
identifying the roles and responsibilities of the different stakeholders involved in the
KMS implementation (Davenport & Prusak, 1998).
Implement the KMS and monitor its effectiveness
5
The final step is to implement the KMS and monitor its effectiveness over time. This
involves implementing the system, training employees on how to use it, and
monitoring its usage and impact on the organization's operations. Regular monitoring
and evaluation can help identify areas for improvement and ensure that the KMS
continues to meet the organization's evolving needs (Wiig, 1993).
Conclusion
In conclusion, a successful knowledge management system implementation requires
careful planning, technology selection, strategy development, and monitoring. These
steps can help ensure that the KMS is effective in achieving its goals and supporting
the organization's business operations.
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Question 2
Introduction
During the previous decade, the corporate sector began to perceive and use
information as a competitive advantage weapon. At the time, the concept of
knowledge management (KM) was gaining traction. However, in the twenty-first
century, knowledge and, by extension, knowledge management have become a
driving force in any nation's social, economic, and educational development.
Over time, many definitions of knowledge have arisen. Ikenwe and Igbinovia (2015)
defined knowledge in this context as enriched information and a combination of
experience, insights, reading, and imaginations. It emerges in people's thoughts
through a combination of data, information, and experience (Kucza, 2001).
Knowledge is knowledge that has been condensed such that it is context-based and
applicable to real-world challenges.
According to Aguolu and Aguolu (2002), it is knowledge that has been understood
and digested according to a point of view, preparing the recipient for appropriate
actions. Knowledge exists by implication in a DIKW (Data-information-knowledge-
wisdom) chain, also known as the information continuum, according to the several
definitions presented above. Whereas data is a discrete item, information is linked
data, knowledge is organized information, and wisdom is applied knowledge.
According to Liew (2007), data are recorded (captured and stored) symbols and signal
readings, information is a message containing relevant meaning, implication, or input
for decision and/or action, and knowledge is the (1) cognition or recognition (know-
what), (2) capacity to act (know-how), and (3) understanding (know-why) that resides
or is contained within the mind or brain. This demonstrates the relationship between
data, information, and knowledge, which occurs in the preceding sequence.
In the discipline of knowledge management, there are two types of knowledge that are
widely accepted: tacit knowledge and explicit knowledge. Tacit knowledge refers to
information that is difficult to encode and express. Nonaka and Takeuchi (1995)
describe it as subjective, context-dependent, and difficult to formalize. Tacit
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knowledge is uncodified knowledge that resides in people's minds and may consist of
expertise, technical know-how, experience, and abilities. To convey and share this
knowledge, mentorship, face-to-face interaction, training, group project/task
execution, and other forms of elicitation can all be used. Explicit knowledge, on the
other hand, is codified and easily transferrable knowledge that is often housed in
physical formats such as books, memoranda, databases, and electronic media, among
others, and can be simply retrieved, gathered, transferred, shared, exploited, or stored.
VEND is a retail management software company that has implemented a knowledge
management system with a consumer-centric design method. The following are five
benefits of VEND's KMS:
Improved customer experience
VEND's KMS enables retailers to access customer data and insights, which can be
used to create personalized experiences for each customer. This can lead to increased
customer satisfaction and loyalty (Ryu, Han, & Kim, 2010).
Enhanced decision-making
VEND's KMS provides retailers with real-time data and insights, which can be used
to make informed decisions about pricing, inventory, and marketing strategies (Alavi
& Leidner, 2001).
Increased operational efficiency
VEND's KMS automates many routine tasks, such as inventory management and
sales tracking, which can free up employees' time to focus on more strategic tasks
(Davenport & Prusak, 1998).
Empowered employees
VEND's KMS provides employees with access to the knowledge and expertise of
their colleagues, which can help them to solve problems more quickly and efficiently
(Wiig, 1993).
Scalability
8
VEND's KMS is designed to scale with the organization, enabling it to grow and
adapt to changing business needs over time (Jennex, 2016).
Conclusion
In conclusion, VEND's KMS provides numerous benefits for retailers, including
improved customer experience, enhanced decision-making, increased operational
efficiency, empowered employees, and scalability.
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Question 3
Introduction
Following the recent expansion of the retail business sector, the emphasis has turned
to internet of things technological innovation in retail companies. The retail scene is
rapidly shifting as a result of advances in Internet technology. This internet
information technology is crucial to the advancement of the retail sector. This refers
to constantly reinventing themselves in the face of the fast-changing retail market. In
example, in the retail industry, new means of meeting client expectations and wishes
emerge on a regular basis through innovation.
In reality, the retail sector's variety of barcode scanners, point-of-sale (POS) systems,
and digital signage is hardly the main source of innovation. The true challenge for
retailers is to link and track these line-of-business assets in order to enhance
efficiency and cut costs; maximize operational performance with real-time
intelligence; and, lastly, change by engaging with customers in new ways through
internet of things technology innovation.
Rajan Varadarajan (2010) investigated how interactive technology and the Internet
have transformed the retail sector and how businesses compete in the market.
Similarly, developing interactive technologies are expected to significantly disrupt the
retailing landscape by influencing retail strategy and supply chain operations.
Furthermore, it is possible that certain future interactive technologies will be viewed
as facilitators (tools to help merchants compete more effectively in the marketplace)
by some and disruptors of current business practices by others.
Interactive technologies can be generic, which means they are widely available from
an information technology (IT) vendor and widely utilized by merchants, or
proprietary, which means they are not widely available from an IT vendor but are
widely used by merchants. A proprietary interactive technology can enable a
corporation to derive economic rents from an innovation over time. This researcher
suggested Investing in generic interactive technology, on the other hand, may be
viewed as a cost of doing business rather than a potential source of long-term
competitive advantage for a shop. However, the study revealed that the retailer's
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complementary resource endowments may enable it to exploit a generic technology
more efficiently than its competitors, creating a long-term competitive advantage.
The retail industry has been revolutionized by the integration of IoT technology,
which has enabled better tracking, monitoring, and optimization of supply chain
processes. Here are five applications of IoT that are being used in the retail industry:
Inventory management
IoT devices, such as RFID tags and sensors, can be used to track inventory levels in
real-time. This helps retailers optimize their inventory, reduce waste, and ensure that
they always have the right products in stock.
Smart shelves
IoT-enabled smart shelves can detect when a product is running low and
automatically reorder it. This reduces the need for manual inventory checks and helps
retailers stay on top of their inventory levels.
Customer analytics
IoT sensors can be used to track customer behavior, such as how long they spend in
certain areas of the store, which products they interact with, and what their purchasing
habits are. This information can be used to create personalized shopping experiences
and improve customer engagement.
Supply chain optimization
IoT devices can be used to track products as they move through the supply chain,
from production to distribution to retail. This helps retailers identify bottlenecks and
inefficiencies in their supply chain and make data-driven decisions to optimize their
operations.
Anti-theft measures
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IoT-enabled security systems, such as cameras and sensors, can be used to prevent
theft and monitor store activity. This helps retailers reduce losses due to theft and
maintain a safe shopping environment for their customers.
Conclusion
In conclusion, IoT technology has transformed the retail industry by enabling better
tracking, monitoring, and optimization of supply chain processes. With the help of
IoT devices like RFID tags, sensors, and cameras, retailers can manage their
inventory more efficiently, reduce waste, and provide a personalized shopping
experience to customers. The integration of IoT in the retail industry has also helped
retailers optimize their operations and improve customer satisfaction. As the
technology continues to evolve, we can expect to see even more innovative IoT
applications in the retail industry in the future.
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Question 4
Introduction
4.1
Inventory Management
Information systems help retailers manage their inventory by tracking stock levels,
sales history, and forecasting demand. This enables retailers to optimize their
inventory levels and ensure that they always have the right products in stock, reducing
the risk of overstocking or understocking.
Point-of-Sale (POS) Systems
Retailers use POS systems to process transactions, capture customer data, and manage
sales. POS systems allow retailers to track sales in real-time, monitor employee
performance, and manage customer relationships by capturing data such as customer
preferences, purchase history, and contact information.
Customer Relationship Management (CRM)
Information systems enable retailers to manage customer relationships by collecting
and analyzing customer data. This allows retailers to develop targeted marketing
campaigns, personalize customer experiences, and improve customer retention.
Supply Chain Management
Information systems help retailers manage their supply chain by tracking the
movement of goods from suppliers to warehouses and stores. This enables retailers to
optimize their supply chain, reduce lead times, and improve efficiency.
Business Intelligence
Information systems provide retailers with business intelligence tools that enable them
to analyze sales data, identify trends, and make informed decisions. This helps
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retailers to develop more effective pricing strategies, optimize their product mix, and
improve overall performance.
4.2
Electronic Point of Sale (EPOS) Systems
EPOS systems are used to process transactions and manage sales in retail stores. They
typically consist of a combination of hardware (e.g., a cash register, barcode scanner,
and payment terminal) and software (e.g., inventory management and reporting tools).
EPOS systems enable retailers to manage sales in real-time, monitor inventory levels,
and track customer data. According to a study by Technavio, the global EPOS
systems market is expected to grow at a CAGR of over 11% during the period 2021-
2025 (Technavio, 2021).
Customer Relationship Management (CRM) Systems
CRM systems are used to manage customer relationships and collect data about
customer preferences, purchase history, and behavior. This information is used to
develop targeted marketing campaigns, improve customer retention, and personalize
customer experiences. For example, Sephora uses a CRM system to track customer
purchases and preferences, and uses this information to offer personalized
recommendations and promotions (TechHQ, 2019).
Supply Chain Management (SCM) Systems
SCM systems are used to manage the movement of goods from suppliers to
warehouses and stores. They enable retailers to optimize their supply chain, reduce
lead times, and improve efficiency. For example, Walmart uses a SCM system called
Retail Link to manage its supply chain, track inventory levels, and monitor supplier
performance (Walmart, n.d.).
Business Intelligence (BI) Systems
BI systems are used to analyze sales data, identify trends, and make informed
decisions. They provide retailers with tools to develop pricing strategies, optimize
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their product mix, and improve overall performance. For example, Tesco uses a BI
system called Clubcard to analyze customer data and develop targeted marketing
campaigns (Huffington Post, 2015).
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